Maik Meid

The Irish Ministry of Finance has announced that it will begin studying a type of new, lower tax rate on intellectual property-earned profits as a way to incentivize tech companies to do business on the Emerald Isle.
The new scheme, whose details have yet to be fully realized, would be called a “Knowledge Development Box.” This setup would allow tech companies—like Google—to pay a small percentage in taxes when they license intellectual property to Irish subsidiaries.
A week ago, the ministry announced that it will phase out its controversial (but legal) tax scheme known as the “Double Irish,” one tactic in the broader phenomenon known as “transfer pricing.” At present, such transfers effectively and legally reduce a company’s tax burden, often to near-zero.
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